Abstract

http://ssrn.com/abstract=815190
 
 

References (70)



 


 



The Effect of ERP System Implementations on the Usefulness of Accounting Information


Joseph F. Brazel


North Carolina State University - Poole College of Management - Department of Accounting

Li Dang


Oregon State University - Department of Accounting, Finance, and Information Management

October 2005


Abstract:     
ERP systems have become the system of choice for the majority of publicly traded companies and have radically changed the way accounting information is processed, analyzed, audited, and disseminated. In this study, we examine whether ERP system implementations have impacted the decision usefulness of accounting information. We find that ERP adoptions lead to a trade-off between increased information relevancy and decreased information reliability for external users of financial statements. After implementing the system, firms concurrently experience both a decrease in reporting lag and an increase in the level of discretionary accruals. Contrary to expectations, adopting more ERP modules did not augment these effects. These results should be of interest to financial statement preparers initially adopting or implementing new versions of ERP applications, auditors serving clients with ERP systems, and regulators overseeing the financial markets and consolidation in the ERP industry.

Number of Pages in PDF File: 37

Keywords: ERP systems, discretionary accruals, implementation, reporting lag

JEL Classification: M41, M43, M49

working papers series


Download This Paper

Date posted: October 4, 2005  

Suggested Citation

Brazel, Joseph F. and Dang, Li, The Effect of ERP System Implementations on the Usefulness of Accounting Information (October 2005). Available at SSRN: http://ssrn.com/abstract=815190 or http://dx.doi.org/10.2139/ssrn.815190

Contact Information

Joseph F. Brazel (Contact Author)
North Carolina State University - Poole College of Management - Department of Accounting ( email )
Campus Box 8113
Nelson Hall
Raleigh, NC 27695
United States
919-513-1772 (Phone)
Li Dang
Oregon State University - Department of Accounting, Finance, and Information Management ( email )
Corvallis, OR 97331
United States
Feedback to SSRN


Paper statistics
Abstract Views: 11,471
Downloads: 4,147
Download Rank: 949
References:  70

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.329 seconds